Chapter 7: Money Flashcards
What is bartering
Swapping goods and services one person has for goods and services another person has
What is money
Anything of value that is widely accepted as payments for goods and services
What is a legal tender
A medium of payment allowed by law from meeting of financial obligation. usually the notes and coins any official currency of a country.
What is The ECB
The European Central bank is the governing body of all EU central banks and it is responsible for making financial decisions for the EU
What is the EMU?
The economic and monetary union be 18 U countries (including Ireland)that use single currency, the euro
What are the three disadvantages of bartering
- Both people involved in the barter must have a good and service that the other person needs or wants
- both items involved in the barter would have to be of an equal value of
- the goods have to be carried around which would be difficult if they are bulky
What are the characteristics of money
- Everyone has to accepted as payment for goods and services
- it has to be easy to recognise i.e. each nose has to be the same as the other notes and coins of the same value e.g all €10 notes have to look the same and have the same value
- it has to be easy to break into smaller units
- it has to be small light and easy to carry around
What are the advantages of a single currency to Ireland
- Firms import or export goods between eurozone countries don’t have to worry about exchange rate changes. the firms know exactly how much the goods and services will cost and how much they will receive when they are paid
- Irish firms that trade with other Eurozone countries save money, as They no longer have to pay commission for changing currency
- Ireland has lower interest rate then It had in the past
- Ireland can expect to have lower inflation rates then it had in the past
What currency is Austria
Euro
What currency is Lithuania
Litas
What currency is Denmark
Danish krone
What currency is Malta
Euro
What currency is Japan
Japanese Yen
What currency is Belgium
Euro
What currency is Bulgaria
Lev
What currency is Portugal
Euro
